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2019 Supreme(Bom) 580

IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT NAGPUR
Manish Pitale, J.
ANITA AMIT AGRAWAL - Appellant
Vs.
UNION OF INDIA - Respondent
Writ Petition No. 3126 of 2018, 3127 of 2018, 3128 of 2018, 3129 of 2018, 3130 of 2018, 3131 of 2018
Decided On : 26-03-2019

Advocates appeared:
H.R. Ghadia, V.A. Bramhe, K.L. Dharmadhikari, A.A. Kathane, Advs.

Headnote:

National Highways Act, 1956 - Section 3-D, Section 3-H (2), 3- H(3) or 3-H(4) - Arbitration and Conciliation Act, 1996 – Section 34 - Grant of interest on delayed payment of compensation – Challenge - Competent Authority issued Awards in cases of Petitioners herein in respect of the aforesaid acquisition - Petitioners invoked provisions of aforesaid Act seeking enhancement of compensation vide reference cases before Arbitrator - On 17th July 2015 Arbitrator pronounced Awards in cases of all Petitioners and granted enhanced compensation - As per terms of Award Respondent No.3 - National Highways Authority of India was required to deposit enhanced amount of compensation along with interest @ 9% per annum with effect from date of notification under Section 3-D of Act till date of payment of enhanced compensation to Petitioners.On 29th January 2016 Respondent No.3 - National Highways Authority of India deposited amount payable to Petitioners along with interest @ 9% per annum as directed by Arbitrator with Respondent No.2 - Competent Authority. It has come on record that Competent Authority on 2nd February 2016 informed Petitioners that they should remain present on 5th February 2016 before Competent Authority with necessary documents for disbursement of amount of compensation along with interest deposited by Respondent No.3 - National Highways Authority of India - Petitioners sent communication to Competent Authority expressing their inability to remain present on 5 th February 2016 and they requested that they be permitted to remain present on 8th February 2016 before Competent Authority for collecting amount of compensation with interest – Held, Executing Court has also placed much emphasis on said efforts made by Competent Authority and it has been found that such efforts made by Competent Authority demonstrated that it had satisfied statutory mandate and consequently no interest could be claimed by Petitioners for delay in disbursement of amounts to them - When statutory mandate under Section 3-H(2) of National Highways Act, 1956 is clear that Competent Authority shall make payment of amount to person or persons entitled thereto, it will be difficult to understand that as to why Competent Authority insisted upon depositing said amount before Court where Applications under Section 34 of Arbitration and Conciliation Act, 1996 were pending - This was in backdrop that Petitioners were repeatedly approached Competent Authority for payment of such amount - pendency of Applications under Section 34 of Arbitration and Conciliation Act had nothing to do with statutory requirement under Section 3-H(2) of National Highways Act, 1956 for Competent Authority to make payment of amounts to Petitioners – It has also come on record that Competent Authority received notices of Applications filed by Petitioners under Section 34 of the Arbitration and Conciliation Act, 1996 on 8th February 2016 and thereafter approach of Competent Authority changed - record shows that despite requests made by Petitioners to release amount of compensation and interest lying with it Competent Authority refused to do so and this impelled Petitioners to institute execution proceedings before court below - Ordered Accordingly

JUDGMENT :

Manish Pitale, J.

Rule. Rule made returnable forthwith. Heard finally with the consent of the learned Counsel appearing for the parties.

2. The Petitioners in these Writ Petitions are land owners whose lands were acquired for the purpose of construction of National Highway by the Respondent No.3 - National Highways Authority of India. Acquisition was undertaken as per the provisions of National Highways Act, 1956. The Petitioners have challenged the impugned orders passed by the court of District Judge-9, Nagpur in execution proceedings initiated by the Petitioners, whereby a specific prayer made for grant of interest on delayed payment of compensation amount by the Respondent No.2 - Competent Authority has been rejected.

3. The facts leading up to filing of the present Petitions are that, on 31st October, 2012 the Respondent No.2 - Competent Authority issued Awards in the cases of the Petitioners herein in respect of the aforesaid acquisition. The Petitioners invoked the provisions of the aforesaid Act seeking enhancement of compensation vide reference cases before the Arbitrator. On 17th July 2015 the Arbitrator pronounced the Awards in the cases of all the Petitioners herein and granted enhanced compensation. As per the terms of the Award, the Respondent No.3 - National Highways Authority of India was required to deposit the enhanced amount of compensation along with interest @ 9% per annum with effect from the date of notification under Section 3-D of the Act till the date of payment of enhanced compensation to the Petitioners.

4. On 29th January 2016 the Respondent No.3 - National Highways Authority of India deposited amount payable to the Petitioners along with interest @ 9% per annum as directed by the Arbitrator with the Respondent No.2 - Competent Authority. It has come on record that the Competent Authority on 2nd February 2016 informed the Petitioners that they should remain present on 5th February 2016 before the Competent Authority with necessary documents for disbursement of the amount of compensation along with interest deposited by the Respondent No.3 - National Highways Authority of India. The Petitioners sent communication to the Competent Authority expressing their inability to remain present on 5 th February 2016 and they requested that they be permitted to remain present on 8th February 2016 before the Competent Authority for collecting the amount of compensation with interest.

5. In the meanwhile, the Petitioners had filed Applications under Section 34 of the Arbitration and Conciliation Act, 1996 before the court of Principal District Judge, Nagpur challenging the aforesaid Awards pronounced by the Arbitrator and notices issued by the said court were received by the Respondent No.2 - Competent Authority on 8th February 2016. According to the Petitioners, due to receipt of such notices in the proceedings initiated by them under Section 34 of the Arbitration and Conciliation Act, 1996, the Competent Authority refused to pay the amount of compensation along with interest to the Petitioners and despite repeated efforts made by them, the competent authority failed to make payment of compensation with interest to them.

6. According to the Petitioners, they were constrained to initiate execution proceedings on 24th June 2016 before the Executing Court in respect of the said Awards and for recovery of the amount of compensation with interest. In these proceedings, the Petitioners contended that they were entitled to the amount of compensation with interest as directed in the arbitration Awards. Eventually on 16th November 2016, the Competent Authority deposited the said amounts as per the Awards passed in favour of the Petitioners, before the Executing Court. The Petitioners withdrew the amount within a period of one week thereafter.

7. In this backdrop, the Petitioners contended before the Executing Court that they were entitled to further interest at the rate of 9% per annum in terms of the Awards from 29th




































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